Dollar Higher as Sterling Slumps on Brexit Woes By

© Reuters. The dollar rose against its rivals on Friday. – The dollar rose against its rivals on Friday, as investors reined in appetite for emerging-market currencies, while the pound racked up losses as the UK and EU reached an “impasse,” on a post-Brexit deal.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.40% to 93.84.

UK Prime Minister Theresa May criticized the EU for rejecting her post-Brexit plans, citing it “unacceptable,” particularly as the bloc failed to put forward alternative proposals.

May further claimed that the UK and EU were at an “impasse,” denting optimism for a post-Brexit deal agreement following recent reports that the EU were set to adopt a warmer approach to Brexit talks.

fell 1.41% to $1.3075, eroding most of the week’s gain as the pair looks set to end the week roughly flat.

The dollar was also supported by profit-taking on emerging-market currencies like the South African rand and Turkish lira, both of which have enjoyed sharp gains on the back of improving sentiment in developing economies.

Turkey unveiled a new economic program earlier this week to reduce its current account deficit, while South Africa’s central bank stood pat on interest rates Thursday.

Elsewhere, fell 0.29% to $1.1743 on weaker-than-expected eurozone manufacturing data. The single currency was set, however, to post a second-straight weekly gain ahead of an important week, as the Italian government is slated to release its budget on Thursday.

rose 0.11% to C$1.2917 amid doubts over a successful outcome on U.S.-Canada talks after White House Economic Adviser Hassett reportedly said U.S.was nearing a deal on NAFTA with Mexico, but not Canada.

Analysts said the loonie would likely continue to trade around current levels as Canadian core inflation remains subdued.

“Unless we see a major uptick in core inflation dynamics, then we think markets are adequately pricing in only one further Bank of Canada rate hike in 2018,” ING said.

rose 0.08% to Y112.57. The pair is likely to continue to strengthen, supported by rising U.S. treasury bond yields, Saxo Bank said.

“Rising U.S. long yields in an environment of strong risk appetite are driving the losses in the yen,” said John J Hardy, head of forex strategy at Saxo Bank

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